Apple Sells 9 Million iPhones in a Weekend | Tech Teardown - 9/23/13 | The Motley Fool

TL;DR

Apple sold 9 million iPhones in the debut weekend, surpassing investor expectations and positively impacting stock performance.

Transcript

erin kennedy here with even new and today we're talking tech in today's biggest headline apple sold 9 million iphones on the debut weekend of the iphone 5s and the 5c evan this is a huge number investors were expecting anywhere from five to seven million what do you make of this nine million is a very solid number i mean i think all investors are v... Read More

Key Insights

• ❓ Selling 9 million iPhones on the debut weekend exceeds investor expectations and positively impacts Apple's stock performance.
• 😘 The higher sales of the lower-cost iPhone 5c model contribute to better margins.
• 🥶 Google's move to offer the free Quick Office suite poses a threat to Microsoft's subscription-based Office 365.
• 😬 Blackberry's upcoming earnings report is expected to be grim, with a significant operating loss and declining subscriber base.
• 🧡 Rumors suggest Google's Nexus 5 phone, manufactured by LG, will be released in October at a mid-range price.
• 🚐 Apple's upcoming iPad event is expected to include a redesign for the full-size iPad and possibly a retina screen for the iPad mini.
• 😫 The event may also feature updates to other hardware, such as MacBooks and Apple TV set-top boxes.

Questions & Answers

Q: Do we know the specific breakdown of how many of each iPhone model was sold?

Apple did not provide a breakdown, but it is believed that most of the sales are weighted towards the 5c model due to the constraint of the 5s model.

Q: Are there concerns about the cheaper 5c model affecting selling prices and gross margins?

While the lower average selling price of the 5c may put some downward pressure on prices, it could also lead to higher margins. Apple's guidance for revenue and gross margin suggests they are confident in maintaining profitability.

Q: Who is threatened by Google's move to offer the free Quick Office suite?

Microsoft is the potential loser here, as they have not focused on a mainstream mobile version of Office. Apple's iWork and Google's Quick Office provide strong free alternatives.

Q: Is Microsoft primarily focused on enterprise sales for Office 365?

Yes, Microsoft's Office division is geared towards enterprise sales, but Google Apps for Business targets the same segment. Apple is unlikely to aggressively target the enterprise market.

Summary & Key Takeaways

• Apple sold 9 million iPhones on the debut weekend, including the iPhone 5s and 5c models.

• The 5s is constrained, leading to higher sales of the lower-cost 5c model, which will benefit margins.

• Apple raised their guidance for revenue and gross margin, indicating positive results for the September quarter.